The first phase of building a settlement involves getting the basics in place. The founder(s) need to claim the land, break ground and start getting the people in. To do this you need a way for them to make a living, somewhere for them to live, and a way to keep them safe from attack.

Making a living depends on the terrain. In mountains it might be mining, on the coast fishing, inland it might be farming, or Lumber. Workers can live in town and work local resources. You could build a Mill (farming or Lumber), A brewery (farming) an Smelter (metal mines) or a quay (fishing) - a tannery is a possibility both for farmed animal skins or hunted animal skins/ furs.

Cheap housing, cheap blocks with multiple occupancy (Tenements), or basic huts work well. Nothing too expensive to start with. Even if you start with huts, they will need to get upgraded as the town/city builds up. As land becomes more valuable, there isn’t space for huts and the land between will be built on - eventually leading to warren of back alleys and cul-de-sacs. But the lower classes have to have somewhere to live - and they can’t afford anything more expensive.

You need some defences and policing. The easy way to do that is to get some soldiers in and, perhaps, build a watch tower for them to use as a base. Put a bit of a wall around it and you have a safe have for people to flee to in case of serious attack.

How ever, you also need somewhere for your founder(s) to live during this period, and they generally want to live in the safest place in town. So you might find that they build a barracks that will serve as a ‘fortified manor house’ while they get established.

Other things associated with this Tier of settlement could be an Alehouse, Brothel, . Shrine or a grave yard. (or all four)

Most of the settlers are commoners although you might find the occasional adept or warrior. Even though there are no shops, there is still trade here, and you can find people with most skills up to (about) Skill:4. There will be someone who can make clothes, shoes or simple metal items. However, it is never anything but basic. You can also find grog shops, street traders and basic (eel and mash) type takeaways for food and traders selling all sorts of items, although anything that costs more than 5 gp is quite hard to find.

Tier 2 - Early growth.

During this phase growth is driven by abetter off class of independent craftsmen and professionals who bring their own work with them. Small scale craftsmen and professionals, living in town houses where the ground floor is work space - a workshop, sales area or office - and selling their goods and services. There will be clothes shops, leather workers, wine stores, bakers, Ale shops, smiths - you can buy most normal things and get most normal services - although probably no masterwork items. . Many of the people will be experts, or perhaps very junior members of small aristocratic families - and they will have Skills up to about Skill:7.

Theses guys have more money, so they attract other businesses to set up. Things like Taverns, Stables, Master Craftsmen and Specialist Shops all start to appear. Chapels, parks, libraries and other such general buildings are well served.

You probably also ought to think about town walls and (at least) a barracks to house your patrolmen and guards. In dangerous areas this might come right at the start of phase two (or even in Tier one) but in more civilised areas it might just be something that happens somewhere in the Tier. If you are in a dangerous area, you might choose to build second defensive/military building - many a town will have a watch tower on one side, and a barracks on the other side.

There is still room for more of the same types of development (especially housing) that was typical of Tier 1 Development - after all craftsmen need labourers, professionals need clerks and they all need feeding, washing done, etc etc.

Tier3 - Maturity
Sooner or later the richer folks come. The businessmen, land owners, merchants, even cadets lines of minor aristocrats - and even a few retired adventures. They have a decent income from somewhere - it might be the man who owns the brewery and the grain mill. Aa person who has invested heavily in housing, or a merchant with a small fleet of ships or a couple of trading caravans. Even the occasional mid level adventurer with a few thousand GP to spare.

More money can attract more master craftsmen, more specialists, and others - a tavern or perhaps an Inn. Shops, Temples, perhaps even trading piers along the river (if there is one). It might be a good time to build a town hall, and maybe even a guild hall.

Tier 4 - Success
A nice place attracts really wealthy people- Noble Villas, Caster Towers, perhaps even a castle for the founder(s). With that comes a theatre, arena, cathedral, academy and all the other top class stuff. However, you still need things from tier 1,2 & 3 types of development. A city is like a pyramid - you need a broad base to support the stuff at the top.

Housing
Tenements/Huts - Low quality housing for the lower echelons of society - labourers, fishermen, messengers and other basic workers. Thet are nearly all commoners although you might find the occasional adept.. However, there is still trade here. You can find people with most skills up to Skill:4. So there is someone who can make clothes, or mend metal work. However, it is never anything but basic. You can also buy stuff here- cheap things worth a couple of GP at most. You can also find grog shops, street traders and basic (eel and mash) type takeaways for food. You get simple businesses Brothels, Tanners, Breweries, Mills, Ale Houses, farms - thing that employ or service low skilled workers/labourers. Shrines, watch tower, grave yard
Houses - The ‘average’ guy - a few commoners, low level experts, warriors, junior professionals, .‘average’ craftsmen. There will be clothes shops, wine stores, bakers, Ale shops, smiths - you can buy most normal things and get most normal services - although probably no masterwork items. . Skills up to about Skill:7. Taverns, stables, master craftsmen and specialists all start to appear. Chapels, parks,
Mansions -businessmen, minor aristocrats, civic administrators (mayor etc) merchants, midlevel adventurers.
Noble Villas - There has to be a relationship here with Casters Towers

Special
People who can create minor magical items as well as special items. They might well be Adepts or adept/experts or perhaps even a low level Magic User
Herbalist (Poisons / Potions)
Alchemist (Alchemy)
Scrivener (Scrolls)